Types of Checking Accounts in 2024

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• A checking account is ideal for managing expenses, and there are many different types.
• A basic, or traditional, checking account is one you would find at a brick-and-mortar bank.
• If you value specific perks, like rewards or a high APY, other types of checking accounts may be more suitable.

A checking account is a valuable tool for managing daily expenses, and there are many options available. Finding the right type of checking account will depend on what you value most in a checking account, from high interest rates to cash-back rewards to low fees.

Overview of checking account types

Basic checking account

A basic, or traditional, checking account is your everyday standard account at brick-and-mortar banks.

These accounts usually have a monthly maintenance fee (also referred to as a monthly service fee) of around $5 or less. Monthly service fees may be waived if you meet certain requirements. You'll also have to be mindful of other common bank fees in a basic account, like overdraft fees and non-sufficient funds fees.

Examples of traditional checking accounts: Chase Total Checking® , Bank of America Advantage Plus Checking Account

Free checking account

A free checking account doesn't charge monthly service fees. The best free checking accounts are primarily available at online banks and credit unions, although a few regional or local brick-and-mortar banks may also offer them.

Examples of free checking accounts: Capital One 360 Checking , Consumers Credit Union Free Rewards Checking Account

Business checking account

A business checking account is for business owners to manage expenses. Brick-and-mortar banks, credit unions, and online institutions offer business checking accounts. Fees vary widely depending on the financial institution, although, there are accounts with minimal bank fees.

Examples of business checking accounts: Bluevine Business Checking Account , NBKC Business Checking Account , Novo Business Checking Account

Online checking account

An online checking account must be primarily managed online.

The best online checking accounts are available at online financial institutions or online banking divisions. A downside to these accounts is a lack of physical branch locations where you can receive customer service.

Examples of online checking accounts: Ally Spending Account , Chime® Checking Account , Varo Bank Account

Premium checking account

A premium checking account is another account commonly found at brick-and-mortar banks.

These accounts include perks that aren't available in traditional checking accounts. For example, the bank may waive standard fees for things like money orders or cashier's checks and reimburse out-of-network ATM fees .

You may have to meet certain balance requirements to open a premium checking account, though.

Examples of premium checking accounts: Chase Sapphire℠ Banking , Wells Fargo Prime Checking

Rewards checking account

A rewards checking account compensates account owners for certain activities.

For example, if you have a cash-back checking account, you'll earn cash back on debit card purchases. Or you may qualify for a cash bonus if you set up a direct deposit or make a specific amount of debit card transactions monthly.

The best rewards checking accounts are mostly found at online banks or credit unions.

Examples of rewards checking accounts: Axos Bank Rewards Checking , Upgrade Rewards Checking Plus , American Express® Rewards Checking Account

High-yield checking account

A high-yield checking account offers an interest rate above the national average when you maintain a high account balance or make certain qualifying transactions, like debit card purchases.

The best high-yield checking accounts can be found at online banks or credit unions.

Examples of high-yield checking accounts: Redneck Bank Rewards Checkin' Account , Primis Premium Checking

Second chance bank account

A second chance bank account permits people to still have access to banking services regardless of their previous banking history. The purpose of these accounts is to allow you to rebuild your banking history.

A second chance bank account may have limitations, like no debit card or checks, to help a person avoid overdraft fees. At some financial institutions, a second chance bank account may be temporary. After six months or a year, you may be able to upgrade to a traditional checking account.

Second chance bank accounts can be found at both brick-and-mortar financial institutions and online banks.

Examples of second chance bank accounts: SoFi Checking and Savings , Dora Financial Everyday Checking Account

Student checking account

A student checking account is designed for a college student, typically between the ages of 18 and 24. These accounts often come with minimal fees and strong online banking features, both of which make it easy for students to learn essential money-management skills.

Student checking accounts can be found at online and traditional brick-and-mortar banks, and some may be available to all customers.

Examples of student checking accounts: Chase College Checking℠ , SoFi Checking and Savings

Teen checking account

A teen checking account allows a minor to open a joint bank account with a parent. Teens can learn to manage spending with a parent's authorization and monitoring.

Examples of teen checking accounts: Alliant Teen Checking , PNC Virtual Wallet Student Account

Senior checking account

A senior checking account is for people ages 55 and up. These accounts have perks like waived fees and discounts on loans.

Examples of senior checking accounts: TD Bank 60 Plus Checking Account , Regions Bank LifeGreen 62+ Checking Account

Private checking account

A private checking account is specifically for people who maintain a high account balance and want a private banker. Private banking is a service mostly offered by large, national banks.

Examples of private checking accounts: Chase Private Client Checking℠ , Citigold® Private Client Checking Account

How to choose the right checking account

While there isn't one specific type of checking account that's right for everyone, understanding the differences between various options and figuring out your preferences can go a long way in choosing a checking account that fits your needs.

For example, think about where you want to bank. A brick-and-mortar bank may be a good option if you feel more comfortable visiting branches and speaking with bankers in person.

However, keep in mind that online banks usually charge lower fees. Online banks could be a better choice if you're comfortable banking from your computer or a mobile app.

Make sure you find an account that is manageable without paying additional fees. For example, a solid checking account either doesn't charge any monthly maintenance fees or offers a way to waive the fee that isn't a stretch for you.

Ultimately, there are a multitude of checking accounts offered, so take your time comparing choices. You'll likely find an account that aligns with your preferred banking experience and has the features you want.

FAQs

What is the difference between basic and interest-bearing checking accounts?

A basic checking account comes with essential features, such as a debit card and checks, but earns a minimal amount of interest—usually around 0.01% to 0.03% APY. The average interest-bearing checking account earns 0.08% APY.

Are there checking accounts that don't charge overdraft fees?

Many checking accounts offer overdraft protection, which can help you avoid overdraft fees. Carefully review the bank's overdraft policies before opening an account.

Can I open a checking account online?

Most banks and credit unions have online applications for checking accounts. You will need to provide your government ID, Social Security number, and a proof of address.

What are the benefits of a student checking account?

Student checking accounts are designed to cater to college students between the ages of 18 and 24. They tend to have low to no fees or minimum balance requirements and offer tools for learning about money management.

How do premium or high-yield checking accounts work?

Premium checking accounts offer perks like higher interest rates and waived fees for customers who keep a minimum daily balance of at least $10,000 to $15,000. Some premium accounts require a balance of $50,000 to $100,000.